In a move aimed at maintaining uninterrupted financial services, the Ministry of Labour and Employment has issued a fresh notification extending the Banking industry’s status as a Public Utility Service under the Industrial Disputes Act, 1947 for another six months, starting from 15th June 2025.
The official notification, dated 9th June 2025, cites public interest as the primary reason for this extension.
Background
- The Banking industry is listed under Item 2 of the First Schedule to the Industrial Disputes Act, 1947.
- Previously, the industry was declared a public utility service for six months starting 15th December 2024, via notification S.O. 5362(E) dated 11th December 2024.
- The new notification extends this status for another six months, from 15th June 2025 to 15th December 2025.
Significance of the Declaration
Under this designation:
- Strikes and lockouts in the banking sector are subject to strict procedural conditions, including prior notice requirements.
- It ensures that critical banking functions continue without disruption, supporting economic stability and public confidence.
- The move is especially important given the sector’s role in wage distribution, digital transactions, credit operations, and economic policymaking.
Government Justification
The notification clearly states that the Central Government is satisfied that such an extension is necessary in public interest to ensure the continued delivery of essential banking services across the country.
This measure reinforces the government’s commitment to protecting economic activity and maintaining financial normalcy, particularly during sensitive economic periods.
Effective Duration
The extended public utility status will now remain valid from 15th June 2025 to 15th December 2025, unless withdrawn or further extended.
For more updates and official documents, visit the Ministry of Labour and Employment.
